Photo: OMV Petrom
The Petrobrazi refinery in Romania will become the first major producer of sustainable fuels in Southeast Europe, OMV Petrom said. The company earmarked EUR 750 million for the investments in the facility.
The 90-year old Petrobrazi oil refinery is undergoing a major transformation, with EUR 2 billion in investments planned by 2030. OMV Petrom said it aims to cut the facility’s carbon emissions by 15% from the 2019 level. The endeavor includes EUR 750 million earmarked for the plant for the production of sustainable aviation fuels (SAF) and hydrotreated vegetable oil (HVO) and two green hydrogen units.
HVO is also known as renewable or green diesel or biodiesel. The company, which made the final investment decision, said it would be able to supply 250,000 tons of sustainable fuels per year from 2028.
“In addition to our new renewable power projects, today we have taken a decisive step towards decarbonizing transport in Romania. In total, by 2030, we’re committing EUR 11 billion to transform the company for a lower carbon future, both in Romania and the region,” Chief Executive Officer Christina Verchere stated.
Petrobrazi will become the first major producer of sustainable fuels in Southeast Europe, according to OMV Petrom. The demand for such products is expected to gradually increase, it added.
Green hydrogen for production of sustainable fuels
The planned investment in the SAF/HVO system amounts to EUR 560 million. It would include byproducts for the chemical industry like bio-naphtha and bio-LPG, which is equivalent to liquefied petroleum gas.
The high flexibility of the installation allows adjusting the product mix according to market demand and the available feedstock mix, the oil and gas company explained. The plant will have an annual consumption of 11,000 tons of hydrogen, most of which will be provided by the two new green hydrogen production units, it said.
The product mix can be adjusted to market demand and the available feedstock
They are valued at EUR 190 million, of which up to EUR 50 million is from European funds, obtained through the National Recovery and Resilience Plan (NRRP or, in Romanian, PNRR).
The electrolyzers will have a total capacity of 55 MW and an estimated annual output of 8,000 tons. Integrating green hydrogen into sustainable fuels, such as sustainable aviation fuel and renewable diesel, will result in at least a 70% reduction in carbon dioxide emissions compared to conventional fuels, the company claimed.
Respiră Verde to supply biofuel unit with used edible oil
To secure the supply of the raw material, OMV Petrom has acquired a 50% stake in Respiră Verde, which collects up to 10,000 tons of used cooking oil per year in Romania.
The group has an annual refining capacity of 4.5 million tons. It operates an 860 MW gas-fired power plant in Romania and 780 filling stations in the region under its brands OMV and Petrom.
The Ministry of Energy held a 20.7% share at the end of last year while Romanian pension funds controlled 22.5%. Austria-based OMV is the majority owner, with 51.2%.
Earlier this month, OMV Petrom said it purchased a 50% stake from Renovatio in three photovoltaic projects of 130 MW in total. In addition, it has received operating permits for solar power investments of a combined 710 MW.
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